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A Peer-reviewed scientific articles/A1 Journal article (refereed), original research
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State enforceability of noncompete agreements: Regulations that stifle productivity!, Human resource management 1; January/February (2018). Anand, Smriti; Hasan, Iftekhar; Sharma, Priyanka; Wang, Haizhi

Category A Peer-reviewed scientific articles
Sub-category A1 Journal article (refereed), original research
auki Internal authors
All authors as text Anand, Smriti; Hasan, Iftekhar; Sharma, Priyanka; Wang, Haizhi 
Number of authors
Status Published
Year of publication 2018 
Date 23.02.2018 
Name of article State enforceability of noncompete agreements: Regulations that stifle productivity! 
Name of journal Human resource management
Volume of issue 57 
Number of issue 1; January/February 
Pages 341-354 
Abstract Noncompete agreements (also known as covenants not to compete [CNCs]) are frequently used by many businesses in an attempt to maintain their competitive advantage by safeguarding their human capital and the associated business secrets. Although the choice of whether to include CNCs in employment contracts is made by firms, the real extent of their restrictiveness is determined by the state laws. In this article, we explore the effect of state‐level CNC enforceability on firm productivity. We assert that an increase in state level CNC enforceability is detrimental to firm productivity, and this relationship becomes stronger as comparable job opportunities become more concentrated in a firm's home state. On the other hand, this negative relationship is weakened as employee compensation tends to become more long‐term oriented. Results based on hierarchical linear modeling analysis of 21,134 firm‐year observations for 3,027 unique firms supported all three hypotheses.
Free text descriptor in Finnish yritykset; henkilöstö; sopimukset; tuottavuus; lainsäädäntö; 
Free text descriptor in English CNC, employment contracts, firm productivity, noncompete agreements 
ISSN / e-ISSN 1099-050X 
auki Internet addresses
Additional information First published: 11 September 2017
Notes BoF DP 24/2017 

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